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• Operating profit (EBIT) increases by 18% to CHF 79.3
million; in local currencies increase of 23%
• Net profit up 20% to CHF 48.5 million, in local currencies up
26%
• Sales volumes up 19% to 266,763 tons
• Sales revenues up 48% of CHF 1,056.9 million, in local
currencies increase of 54%
• Gross profit up 37% to CHF 330.4 million, in local currencies
increase of 41%
• Refinancing of Group to be newly structured through a senior
5-year loan facility and a debt financing structure in the capital
markets

Zurich/Switzerland, February 26, 2003 – Barry Callebaut AG,
the world’s leading manufacturer of high-quality cocoa and
chocolate products, announced today results for the three-month
period ended November 30, 2002. Quarterly results were published
for the first time in connection with the company’s refinancing
package.

Business development in line with strategic
priorities

The company made further progress towards its strategic
objectives to enhance its leadership position in chocolate for
industrial customers as well as for professional users, to build a
successful Consumer Products business through the restructuring and
integration of Stollwerck and to focus its sales of cocoa products
to key customers.

Sales volumes increased by 19% to 266,763 tons
from 223,556 in the prior-year period. Sales volumes in Cocoa,
Sourcing & Risk Management were deliberately scaled back by
10%, in line with corporate strategy. On the other hand, sales
volumes in the Food Manufacturers business unit increased 5%, and
sales volumes in the Gourmet & Specialties business unit grew
4%. Primarily as a result of the Stollwerck acquisition, sales
volumes in Consumer Products increased by 259%.

Sales revenues increased by 48% to CHF 1,056.9
million, up from CHF 712.9 million in the prior-year period. In
local currencies, sales revenues grew 54%. The increase in sales
revenues was faster than volume growth due to the 45% increase in
average cocoa bean prices in the quarter under review compared to
the 2001/02 period.

Gross profit, defined as sales revenues less
material consumed, increased by 37% to CHF 330.4 million, up from
CHF 241.8 million in the prior-year period. On a per ton basis,
gross profit increased by 15%, which reflects an improved product
mix primarily due to the addition of the higher-margin Stollwerck
products and to the strategic reduction of sales of lower-margin
semi-finished products to third parties. – In line with volume
growth, operating profit (EBIT) increased by 18%
to CHF 79.3 million, up from CHF 67.1 million in the prior-year
period. As a percentage of sales revenues, operating profit
decreased to 7.5% in the quarter under review from 9.4% in the
prior-year period, primarily as a result of the cocoa bean price
increase between the two periods. On a per ton basis, operating
profit (EBIT) declined by 1.0% to CHF 297.3 per ton from CHF 300.2
per ton in the prior-year period due to adverse exchange rate
impact. In local currencies, operating profit (EBIT) per ton went
up by 3% to CHF 309.6. – Higher financial costs were offset by
lower taxes, resulting in a net profit (PAT) of
CHF 48.5 million, up 20% from the CHF 40.4 million in the
prior-year. In local currencies, net profit growth was 26%. –
Equity increased to CHF 735.3 million.
The business of Barry Callebaut is influenced by seasonality.
Revenues are highest in the period between late August and the end
of March as a result of the peak in consumer purchases of chocolate
products in the months leading up to the Christmas and Easter
holidays. The seasonal nature of the business does not allow
multiplying quarterly results in order to arrive at estimates for
the full fiscal year.

Business performance by unit

All business units developed and performed in line with our
strategic priorities. Interim gross profit per business unit was
disclosed for greater transparency.
Grinding capacities were further adjusted to primarily cover
internal needs. Sales to third parties in the Cocoa,
Sourcing & Risk Management business unit were reduced
by another 10% as part of the company’s effort to focus on sales
of cocoa products to key customers. Sales volumes amounted to
33,466 tons and sales revenues amounted to CHF 139.1 million
(prior-year period: 37,121 tons and CHF 98.1 million sales
revenues, respectively). The significant increase in sales revenues
was primarily due to higher cocoa bean prices. Gross profit
decreased by 18% to CHF 41.5 million, down from CHF 50.7 million in
the prior-year period. The decrease was due to reduced volumes,
industry-wide declines in processing margins and negative exchange
rate movements.

The Food Manufacturers business unit, which
supplies chocolate and compounds to industrial customers, reported
a 5% increase in sales volumes to 150,233 tons, up from 142,557
tons for the prior-year period. Sales revenues increased by 10% to
CHF 462.7 million (prior-year period: CHF 420.3 million). The
increase was largely attributable to increased sales prices
resulting from the increase in average cocoa bean prices.
Particularly strong sales were generated in Asia-Pacific. Gross
profit decreased by 3% to CHF 123.4 million (prior-year period: CHF
126.5 million) due to negative exchange rate movements. However,
the decrease was partly offset by volume increases.

The Gourmet & Specialties business unit,
whose customers are professional users such as chocolate makers,
pastry chefs, hotels and restaurants, reported a 4% increase in
sales volumes to 30,505 tons (prior-year period: 29,246 tons) and a
8% increase in sales revenues to CHF 136.7 million, up from CHF
126.5 million in the prior-year period. This increase was largely
the result of the business unit’s strategy to focus on the high
margin segment and to drop low-margin customer label activities as
well as on its ability to increase average margins/kg. Gross profit
increased by 7% to CHF 45.1 million, up from CHF 42.3 million in
the prior-year period, due to volume increases and the higher gross
profit margins, offset in part by negative exchange rate movements.
As announced on February 17, 2003, Barry Callebaut has signed an
agreement with Graverboom B.V. to acquire Dutch-Belgian chocolate
company Luijckx Beheer B.V.

In the Consumer Products business unit, sales
volumes grew by 259% to 52,559 tons, up from 14,632 tons. The
increase was nearly entirely attributable to the Stollwerck
acquisition. Sales revenues increased by 368%, from CHF 68.0
million in the prior-year period to CHF 318.4 million, with CHF
250.8 million of such increase attributable to the Stollwerck
acquisition. The dual strategy of offering branded products as well
as customer label products to the market has paid off: above
average market share gains in the rapidly growing hard discount
segment in Germany, promising sales growth in the branded products,
as well as new contracts with international food retailing chains
were recorded. As a result of the Stollwerck acquisition, gross
profits increased to CHF 120.4 million, compared to CHF 22.3
million in the prior-year period. As announced on January 30, 2003,
it is planned to relocate the Gubor production activities and to
close the two production plants in Münstertal and Müllheim,
Germany, with the objective to optimize the cost structure on the
production side.

Review of regional market
development

In Western Europe sales volumes increased by
31% to 183,953 tons or 69% of the Group’s sales volume of 266,763
tons for the first quarter 2002/03, largely as a result of the
Stollwerck acquisition. Western Europe has strengthened its
position as Barry Callebaut’s most important market. The factory
in Bussum, the Netherlands, was closed as planned at the end of
October 2002. Sales volumes in Eastern Europe (4% of the total
sales volume) declined by 1% to 9,797 tons.

Sales volumes in the Americas (North and Latin America) were
down by 3% as a consequence of lower cocoa sales. The
Americas accounted for 21% of total sales volumes,
or 55,693 tons.

Volumes in Asia/Pacific went up
over-proportionately by 16% as a result of reinforced sales
efforts. This region’s share of total volumes amounted to 3%, or
8,399 tons.

Volumes in Africa and the Middle East grew by
2%. This region contributed 3% or 8,921 tons to total volumes.

Ivory Coast

After a one-week shutdown of two of Barry Callebaut’s three
factories in the Ivory Coast, all of Barry Callebaut’s Ivory
Coast factories are back to working to their full capacity. Barry
Callebaut currently believes it will be able to meet all
contractual customer obligations that it has entered into.

Anticipating possible effects of the current unstable political
situation in the Ivory Coast, the company took precautions to
mitigate the impact of these potential risks. These steps include
increasing the purchase of cocoa beans from Ghana, Indonesia and
Nigeria, installing an additional liquor line in Ghana,
accelerating shipments out of the Ivory Coast and building
strategic stocks outside of the region, both for finished products
and for cocoa beans. Since we are now at the end of the main crop,
which starts in October and ends in February, a significant part of
the main crop beans harvested in the Ivory Coast have already been
shipped to production countries in Europe and in the U.S.

Long-term financing structure

Pursuant to the acquisition of Stollwerck, Barry Callebaut has
been analyzing alternatives to improve its long-term capital
structure and to lengthen the maturity profile of its debt. In line
with these objectives, Barry Callebaut is negotiating a new 5-year
senior loan facility with a syndicate of the company’s main
relationship banks. In parallel, the company intends to undertake a
debt financing in the capital markets.

Outlook

Patrick De Maeseneire, Chief Executive Officer of Barry
Callebaut, said: “The outlook for the second quarter 2002/03 is
positive. Sales recorded so far for the second quarter seem to
point towards a good Easter business.”

This press release is not an offer for sale of securities in the
United States. Securities may not be offered or sold in the United
States absent registration of an exemption from registration under
the U.S. Securities Act of 1933, as amended. Barry Callebaut AG
does not intend to register any offering in the United States or to
conduct a public offering in the United States. Any public offering
of securities to be made in the United States will be made only by
means of a prospectus that will contain detailed information about
the company and its management and financial statements.

About Barry Callebaut AG:With
annual sales of CHF 2.6 billion for fiscal year 2001/02, Barry
Callebaut is the world’s leading manufacturer of high-quality
cocoa and chocolate products. Barry Callebaut operates some 30
production facilities in 16 countries and employs approximately
7,000 people. The company is organized into four strategic business
units: Cocoa, Sourcing & Risk Management, Food Manufacturers,
Gourmet & Specialties and Consumer Products.

The company’s customers range from industrial processors,
such as the world famous branded consumer goods manufacturers who
produce chocolate, confectionery, biscuits, dairy products, ice
cream and breakfast cereals incorporating Barry Callebaut’s
products, to artisanal users, including hotels, gastronomy,
chocolate makers, pastry chefs and bakers, to partners in the food
retailing industry for whom the Barry Callebaut Group produces
branded, customer label and other consumer products. Barry
Callebaut also provides a comprehensive range of services in the
fields of product development, processing, training and
marketing.

The holding company, Barry Callebaut AG, has been listed on
the SWX Swiss Exchange since June 1998 (ticker symbol BARN). The
fully paid-up share capital amounts to CHF 517 million, divided
into registered shares with a nominal value of CHF 100 each. On
November 30, 2002, the close of the first quarter of fiscal
2002/03, the market capitalization was CHF 812 million.

Fiscal year 2002/03 will close on August 31, 2003. Results
for the second quarter 2002/03 will be published on April 9,
2003.